As long as the U. S. real estate market and overall economic Financial Crisis exists the supply of real estate will continue to dramatically increase while the demand for real estate (ratio wise) will continue to dramatically decrease. This scenario is definitely not a good one for the United States to be in. Why? Because as America’s real estate values continue to decrease, so will the amount of America’s real estate equity continue to decrease as well. When you decrease and potentially eliminate real estate equity, which by the way is 1 of the 6 Fundamentals of the U. S. economy, from America’s economic growth formula it will result in significant deterioration of the U. S. real estate market. This then leads to significant deterioration of the overall economy as well. Why? Because whatever the direction the real estate market goes in the overall economy will follow due to the fact that the real estate market is one of the main vertebra that supports the U. S. economy’s backbone. Remember it’s this backbone that enables the U. S. economy to:

1.   lay down

2.   get up 

3.   sit down

4.   stand up

5.   walk

6.   jog

7.   run, and

8.   sprint

So as you can see the condition of the U. S. real estate market has and always will have a tremendous impact on the condition of the overall economy. By the way I will be going in great detail about how important the existence of real estate equity is to the growth and prosperity of the U. S. real estate market and overall economy in Section #2 of this book.  

Don’t forget to look for more of my blog entries tomorrow pertaining to the U.S. real estate market and overall economic Financial Crisis.